4. You are planning to make monthly deposits $400 into a retirement account that pays 10% interest compounded monthly. If your first deposit will be made 1 month from now, how large will your retirement account be in 30 years? (10 marks) 5. You have just purchased a new warehouse. To finance the purchase, you have arranged for a 30-year mortgage loan for 80% of the $3,400,000 purchase price. The monthly payment on this loan will be $17,500. What is the monthly compounded APR on this loan? What is the EAR? (10 marks) 6. At the time of the last referendum, Quebec provincial bonds carried a higher yield than comparable Ontario bonds because of investors' uncertainty about the political future of Quebec. Suppose you were an investment manager who thought the market was overplaying these fears. In particular, suppose you thought that yields on Quebec bonds would fall by 50 basis points. Which bonds would you buy or sell? Explain your reasoning. (10 marks)